1. Changes to Local Government Finance & City Council Budget 2013/14 14 th November 2012

2. Changes to Local Government Finance – What’s it like out there?

3. National and Local Views from the LGA... National –Councils were cut earlier and harder than rest of public sector –When more cuts follow in the next Spending Review councils will not be able to afford to deliver the existing service offer by the end of this decade –Fundamental change to one or both of the following is needed: the way local services are funded and organised Statutory and citizen expectations of what councils will provide –Forecast shortfall of revenue v spending of 29% by 2019/20

5. National and Local Views from the LGA... National continued –Continued improved efficiency will not be enough –Future sustainability will require (LGA views): Social Care Funding Reform Rethinking the structures of local public services A proper dialogue with residents about the local taxes they pay Cutting services out not back

6. National and Local Views from the LGA... Local

7. Specific challenges –2010 Comprehensive Spending Review Revenue support cut 28% Capital support cut 50% plus –Government funding linked to policy choices Council tax freeze grant New Homes bonus –Re localisation of Business Rates

8. Specific challenges –Opportunities to change Council Tax exemptions and reliefs –Local Council Tax Support Scheme –Changes to School and Early Years Finance

9. City Council Budget 2013/14

10. Our Recent Journey.... –Think Efficiency –In Year Government Grant Cuts – 2010 –Comprehensive Spending Review 2010 – (2011/12 to 2014/15) – minus 28% Efficiency/cuts for 5 th consecutive year –£78m up to and including 2011/12 –Government funding for capital decimated

11. Protected Priorities Where Possible –Children’s Safeguarding –Maintaining Adult Social Care Eligibility –Skills and work Key Impacts –360 Council staff posts in 12/13 (cumulative 960 posts since 11/12) –Welfare rights and debt advice –Grass cutting & street cleaning –Skills and work

12. Key Impacts continued –Supporting people

13. 2013/14 – overall budget gap target circa £20m Assumes Council Tax increase of 2.5% Budget Strategy Group has made good progress to date Further detail in due course Council Budget meeting late February 2013